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StraighterLine describes how its program can greatly benefit corporate tuition reimbursement programs. For more information visit: http://straighterline.com/
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Effective Tuition Reimbursement
A new way to offer more support to your employees, gain faster benefits
for your company, and cut costs!
Why Help With College?
• Company Support for Education Can– Recruit new employees– Retain good employees– Support company growth
Recruitment
• A dedicated educational component fits well with the overall benefits package that a company uses to entice new employees
• It indicates that the company is interested in encouraging personal development interests
Employee Retention
• A higher education degree takes time to achieve
• Employees become reliant upon the benefit and will seek to keep that benefit available
Supporting Company Growth
• As employees earn a degree, the new knowledge gained feeds back into the company by– Increasing job performance in a current role– Providing the company solutions to filling new
positions internally– Presenting clients with a more polished support
team
Challenges to Providing Educational Benefits
• Tuition Costs• Time• Return on Investment
Tuition Costs
• Cost vary greatly,CAEL (The Council for Adult and Experiential Learning) released a study entitled:
The Market Price of Tuition (November 2007)– Suggested tuition rates included:• Associate’s degrees average: $253 per credit hour• Bachelor’s degree average: $319 per credit hour
Tuition Costs (Con’t)
• Per course costs roughly translate to:– $759 per 3 credit associate’s degree course– $957 per 3 credit bachelor’s degree course
• The IRS tax limit on employee tuition reimbursement is:– $5,250 tax-free annually– Allows coverage for approximately 5.5 courses in a
bachelor’s degree program per year
Time
• An employee taking 5.5 courses per year will need approximately:– 7+ years to complete a bachelor’s degree
Return on Investment
• While a 7+ year path to a bachelor’s degree may seem to be a benefit to employee retention, the unrealistic program length can– Reduce the appeal of the program• Yielding less interest, less adoption, less appeal as a
benefit– Lead to fewer successful degree earners• Yielding lower return on the company’s educational
investment
How Can You Maximize Educational Investment?
• There are two primary steps1. Find a balance between the completion times
and retention needs2. Search for programs that reduce the market price
of tuition
Seek Balance
• Bachelor’s degree seekers still view the degree as a four year program– Seek to offer employees ways to help them
manage work, home, and education in a way that holds this standard as achievable• KEY CONCEPT: Flexible Course Schedules Help!• KEY CONCEPT: Online Programs Are Flexible!
Reduce Tuition Costs
• Lower tuition prices allow for more courses per year
• Completing a bachelor’s degree in 4 years requires at least 10 courses per year– KEY CONCEPT: Lower Tuition = More Courses!– KEY CONCEPT: Approve programs with tuition
rates below $525 per course!
Program Comparisons
Final Analysis
• Programs like StraighterLine can reduce benefits costs up to $42,000 when run-out across the entirety of a bachelor’s degree program
• They can also bring the skills learned back to the work place 2.75 time faster
Thank You!
Ryan T. Busch | Director of StraighterLine1900 L. Street NW | Suite 301 | Washington | DC | 20036P: (202) 507-7020 ext. 615 | M: (602) 486-7110 | F: (202) 543-5589rbusch@StraighterLine.com | 1-877-Str8erLine (1-877-787-8375)LinkedIn Profile: http://www.linkedin.com/in/ryanbusch
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